Course 4 - Time Value of Money - Concepts and Applications (Video) (Course Id 1903)

• Who is this course for?
  This course is designed for professionals seeking Continuing Professional Education (CPE), particularly accountants who apply time value of money in asset and liability valuation.

• What is this course about or what problem does this course solve?
  The course provides a foundational understanding of time value of money, covering interest, future and present values, and internal rate of return, along with practical accounting applications.

• How can the knowledge from this course be used?
  Learners can apply these concepts to financial planning for goals like education or vacations and to properly value bond investments and liabilities on balance sheets.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Time value of money is central to economic and financial decision-making, making it a critical concept for accountants responsible for accurate financial reporting and asset valuation.

• When is this course relevant or timely?
  This course remains consistently relevant as it addresses core principles used in ongoing business, investment, and accounting practices.

• How is a course like this consumed or used?
  Delivered as a NASBA QAS self-study video, the course includes review and final exam questions and provides 2.0 CPE credits upon passing with a score of at least 70%.

This course covers time value of money, a concept at the heart of economics, finance, and business decision making that also is frequently used by accountants when valuing assets and liabilities.  The course consists of a single video that covers interest, future value and present value of various cash flows, and internal rates of return.  The applications covered include creating savings plans for future goals, such as vacations and college educations, as well as valuing and accounting for bond investments. 

Video - NASBA QAS - Text - NASBA Registry - 1903

Course Learning Objectives

• Define the concept of time value of money.
• Explain how to compute the future value of a variety of cash flows.
• Explain how to compute the present value of a variety of cash flows.
• Explain how to compute the internal rate of return of a variety of cash flows.
• Demonstrate how the concept of time value of money is applied to various savings plans and the valuation of assets and liabilities on the balance sheet.

Chapter 1 - Time Value of Money - Concepts and Applications

Chapter 1 Review Questions

Glossary